Legend Oil and Gas limited is a very interesting stock at the moment. The stock rallied over a period of three days and now is on a declining trend. The stock has broken two support lines. Investors who had invested in the stock will be in deep concern pondering the next move. A look at the chart reveals that the sellers have been active over the pas t few days on the counter.
The company has announced the appointment of two new independent directors to our Board of Directors, Mr. Alan Jochelson and Mr. John Busey. This brings the current number of directors on our Board to four, with the expectation of an additional appointee within the next several weeks. These appointments reflect our corporate governance objective of having a majority of independent directors on our Board. This is the only significant news on the stock over the past few days.
The company can expect a few more downward sessions over the week. The RSI charts indicate a sell signal too. There appears to be resistance at the 2.25 level. Expect a drop to the lower bollenger band. As mentioned volumes have nearly reached nearly 1.2 million shares, which is three times higher than the daily average. LOGL bounced off and rallied 18.46% back up to $0.77. The trading volume was lower than the previous hectic session and almost matched the three-month daily average.
AT current levels we maintain a sell on the stock and would also advice investors to go short on the stock and look at a gain of 25 percent on the investment.